Bridging Finance
We specialise in providing tailored finance solutions to suit most circumstances. As a premier partner with most lenders, we offer our customers the best interest rates and cover most financial situations, no matter how difficult you believe yours could be. To get the process underway, simply use our online bridging loan calculator for a fast indicative repayment figure.
What is a bridging loan?
Bridging loans can provide access to funds when traditional mortgage financing is not immediately available. Meaning, they are short-term loans which are typically repaid within 1 to 18 months.
The 4 step process to getting a bridging loan:
1. Indicative quotation: During an initial phone consultation, we review your requirements and provide expert, unbiased advice to each of our prospective customers. We will email you the quotation, and if you are satisfied with the cost and proposed interest rate. We will proceed to step 2.
2. DIP approval: It usually takes an hour or two to obtain a decision in principle; on approval, we will send you a detailed quotation and a copy of the terms.
3. Property valuation and application process: A valuation is processed (if applicable) and the necessary information is taken to submit the application to the lender for underwriter review. Once approved by the underwriter, you will receive a full offer.
4. Completion: Once the loan has been completed, the funds are released.
Why would you use bridging finance?
Bridging loans serve as a versatile financial tool in a range of situations where immediate access to funds is essential.
Key scenarios when they are useful:
- Property Purchase: In fast-moving property markets or at auctions, timing is critical. Bridging loans enable buyers to act swiftly, securing a property without waiting for traditional mortgage approval processes. This flexibility is particularly advantageous when purchasing below market value properties or those requiring immediate attention.
- Property Development: Bridging loans provide developers with the necessary funds to start renovation and development projects.
- Chain Break: Property transactions often rely on the sale of an existing property. Bridging finance can prevent the collapse of a property chain by bridging the financial gap between the purchase of a new property and the sale of an existing one.
- Quick Cash Injection: There are times when you need finance urgently, and waiting for conventional financing isn’t feasible. This could include covering tax liabilities, settling urgent debts, or capitalising on business opportunities.
- Expats: British citizens who have moved abroad but wish to purchase property in the UK.
In each of these scenarios, the speed and flexibility of bridging finance make it a preferred choice for those seeking short-term financial solutions, particularly if you compare it to the lengthy approval times of more traditional lending routes.
The types of bridging loans
- Bridging Loans For House Purchase
- Bridging Loans for Property Development
- Closed Bridging Finance
- Commercial Bridging Loans
- Land Bridging Finance
- Property Auction Finance
- Refurbishment Loans
- Repossession Loans
- Residential Property Loan
- Self Build Bridging Loans
Pros and cons of bridging loans:
They come with both advantages and considerations that potential borrowers should carefully consider.
Pros of Bridging Loans:
- Speed of access: One of the main advantages of a bridging loan is how fast you get the funds.
- Bridging loan uses: They are flexible and can be used for a variety of reasons, such as property purchases, renovations, property chains, and urgent quick cash injections for companies.
- Bridging financial gaps: They are useful when there is a temporary shortfall in finances, an example of this being during the transition of selling a property and buying a new one or when you need 100% of the asking price to hand.
- Potential for higher returns: For property developers and investors, bridging loans help secure undervalued properties or fund time-sensitive projects that deliver high returns.
Cons of Bridging Loans:
- Higher costs: Bridging loans typically come with a higher interest rate and fees compared to traditional mortgages as it’s a higher risk for lenders.
- Short-term obligation: Bridging finance is a short-term solution, usually ranging from 1 to 18 months.
- Risk of property repossession: Like any loan secured against property, there is a risk of repossession if the borrower fails to meet repayment obligations.
See our Bridging Case Studies:
- A Local Developer Finds Land With Potential
- A Modern Day Landlord With A Great Business Idea
- Almost Completed Development Site Overruns Current Loan
- Bridging Loan for Home Improvements
- Clearing a Current Mortgage
- Covid-19 Withdrawal Regulated Bridging Loan
- Expat Bridging Loan
- Helping An Ageing Couple Find A New Lease In Life
- Naomi Inherits A Property In Need Of Renovation
- Old Textile Mill in the North of England
- Pete’s Business Needs A Cash Injection
Why us?
As an experienced broker, we have a highly efficient team that is committed to providing a first-class service and will search the whole market to get our clients the best deal with extended opening hours, live chat, online appointments, email and phone support; we are always accessible to our customers. We are open all week.